v3.25.2
Leases
 6 Months Ended
Jun. 30, 2025
Leases [Abstract]  
Leases

8. Leases

 

As of June 30, 2025, all of the Company’s leases are classified as operating and primarily consist of office space leases expiring in 2025 through 2029. The Company elected not to include short-term leases (i.e., leases with initial terms of less than twelve months), or equipment leases (deemed immaterial) on the statements of financial condition. The Company leases some miscellaneous office equipment, but they are immaterial and therefore the Company records the costs associated with this office equipment on the statements of operations rather than capitalizing them as lease right-of-use assets. The balance of the lease right-of-use assets and lease liabilities are displayed on the statements of financial condition and the below tables display further detail on the Company’s leases.

 

Lease Term and Discount Rate 

As of
June 30,
2025

  

As of
December 31,
2024

 
Weighted average remaining lease term – operating leases (in years)   3.0    3.3 
Weighted average discount rate – operating leases   7.5%   7.3%
  

Three Months Ended
June 30,

  

Six Months Ended
June 30,

 
   2025   2024   2025   2024 
Operating lease cost  $268,000   $251,000   $538,000   $534,000 
Short-term lease cost   96,000    61,000    196,000    221,000 
Variable lease cost   78,000    66,000    175,000    120,000 
Total Rent and occupancy  $442,000   $378,000   $909,000   $875,000 
                     
Operating cash flows from operating leases  $290,000   $267,000   $557,000   $536,000 

 

Lease Commitments

 

Future annual minimum payments for operating leases with initial terms of greater than one year as of June 30, 2025 were as follows:

 

Year  Amount 
2025  $503,000 
2026   864,000 
2027   613,000 
2028   522,000 
2029   58,000 
Remaining balance of lease payments   2,560,000 
Less: difference between undiscounted cash flows and discounted cash flows   277,000 
Lease liabilities  $2,283,000